Getting into Debt for a College Education

1385 Words Jul 8th, 2018 6 Pages
An estimated 20 million Americans attend college each year, and 60% of those students borrow annually to pay for it (qtd. in asa.org, “Student Loan Debt Statistics”). Moreover, citizens continuing to pay off debt after schooling brings the overall number of student-loan-borrowers to about 40 million- with a collective 1 trillion dollars in debt (McCarthy, “10 Fun Facts About the Student Debt Crisis); a fourth of these borrowers owe over $28,000, a tenth owe over $54,000, 3.1% owe more than $100,000, “and 0.45 percent of borrowers, or 167,000 people, owe more than $200,000” (Haughwout, “Grading Student Loans”). While some view this predicament as the result of laziness or carelessness, the bulk of this substantial group are not at fault. …show more content…
Economy?”). The trending under-purchase of vehicles and homes is stunting the economy, reducing household formation/construction jobs, hurting businesses, and consequently decreasing profit and the number of employees they can support. Current students cut back on the number of classes they take, extending the time needed to graduate, and often work 2-3 jobs to make ends meet- creating a demanding lifestyle; graduates soon enter low-wage jobs in their field, if they find one at all, causing some to miss payments, lowering their credit score. “As of early 2012, borrowers in their 30s have a delinquency rate (more than 90 days past due) of about 6%, while borrowers in their 40s have a delinquency rate double that, at about 12 percent. Borrowers in their 50s have a delinquency rate of 9.4% and those over 60 have a delinquency rate of 9.5%” (qtd. in asa.org, “Student Loan Debt Statistics”). With bad credit, it is unlikely to get an approved loan or mortgage from a bank, pass a credit check from a landlord, or look appealing to an employer. Student loans has created a devastating trap for individuals striving to better their lives; unpaid private loans are inherited in the borrower's next generation,